How Bridge Loans Can Help You Purchase
Bridge loans are a great financial tool to provide you
with the flexibility to make a non-contingent offer, leverage the equity in
your current home without having to do a simultaneous close/move, and/or
qualify for a purchase prior to selling your departing property.
The most common type of bridge loan is a current (departing)
property bridge loan which pulls equity out of your current primary residence
to be used for the down payment on a new home or to purchase your new home in
A bridge loan can also be used on the property you are purchasing.
One benefit of a purchase bridge loan is that if certain conditions are met
(departing residence listed for sale and available reserves) then the monthly
payment associated with the departing residence may be excluded from the DTI calculation.
This allows a borrower who doesn’t qualify carrying both homes
to purchase their new home prior to selling their departing residence.
A bridge loan can be used on both the departing residence
and the purchase property when the borrower needs both the equity from the
current property yet does not qualify carrying both properties.
Atlantic Coast Mortgage bridge loans are 6-month interest only with no
escrows and are allowed on primary residences or second homes in DC, MD, NC,
VA, and Charleston, SC MSA. The bridge loan will take first lien position so any existing mortgages will be paid off in addition any proceeds received.
For further information please reach out to Melissa Bell, NMLS ID 450558, with Atlantic Coast Mortgage.
Atlantic Coast Mortgage, LLC is an Equal Housing Lender
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with information about your home.